EU wine sector urges swift ratification of Mercosur trade deal
With global wine consumption in decline and trade tensions flaring elsewhere, the EU wine industry is pressing Brussels to act decisively. The long-stalled EU-Mercosur agreement could be a lifeline for producers seeking stable export growth in Latin America.
The Comité Européen des Entreprises Vins (CEEV), the central body representing European wine producers, has issued a stark call to action: the European Commission must immediately adopt and ratify the EU-Mercosur trade agreement. Speaking in Brussels on 25 June, CEEV president Marzia Varvaglione framed the deal as nothing short of essential in an era of structural consumption decline and mounting geopolitical risk.
“Brazil’s 27% duty is a major drag on our companies’ competitiveness,” said CEEV Secretary General Ignacio Sánchez Recarte. The agreement promises to eliminate these barriers, ease import procedures and, crucially, protect EU Geographical Indications (GIs) in a market often overlooked by European vintners.
Given that EU wine exports to Brazil accounted for just over €206 million in 2024, barely 1% of the bloc’s total wine exports, the growth potential is clear. “We cannot miss this opportunity,” Recarte added.
Brazil: A thirsty but underexploited market
Despite its vast population and rising middle class, Brazil remains largely untapped by EU wine exporters. This is not for lack of demand, but due to punitive tariffs and burdensome import formalities that make EU wines uncompetitive against New World producers, particularly Argentina and Chile.
The Mercosur agreement would level that playing field. It proposes not just tariff reduction, but a modern framework aligning oenological practices and safeguarding the complex and culturally significant EU GI system, a core tenet of Europe’s wine identity.
It’s worth recalling that Brazil is already a promising consumer market for wine, with increasing domestic interest in imported and premium labels. For smaller European producers, especially those in Portugal, Greece, and Italy’s south, the new deal could unlock vital new revenue streams.
A rare bit of trade optimism amid transatlantic tension
This appeal comes at a moment when trade tensions elsewhere are nearing a boiling point. The EU is currently engaged in a precarious dance with the United States, following President Trump’s announcement of a 20% tariff on EU goods, a figure temporarily halved to 10% for 90 days, pending negotiations.
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The wine sector, already wearied by years of uncertainty during the Airbus-Boeing dispute, fears being dragged once again into a transatlantic tariff war. “We believe in the wine-for-wine principle,” Recarte recently told db referring to the EU’s long-standing pact with its American counterpart to keep wine out of retaliatory measures.
Leading voices in the industry, including Unione Italiana Vini president Lamberto Frescobaldi, warn of the asymmetry in any such clash: EU wine exports to the US total nearly €5 billion annually, while American wine into Europe represents a fraction of that. “The imbalance of risk could not be clearer,” he said, adding that an escalation would be a “lose-lose” scenario for both sides.
New CEEV leadership adds fresh urgency
Marzia Varvaglione’s recent appointment as CEEV president is symbolic as much as strategic. A young entrepreneur from her family’s historic Puglian estate, Varvaglione represents a new generation of wine leadership: one increasingly focused on global adaptability, consumer evolution, and regulatory engagement.
“The European wine sector is undergoing a complex and progressive transition,” she noted in March. Her presidency arrives just as geopolitical shocks, from tariff threats to shifting consumer demographics, place immense pressure on traditional business models.
Under her leadership, CEEV has renewed its focus not only on emerging markets like Brazil but also on defending wine’s cultural status in trade negotiations. “We have to consider the influence of outside forces,” she said. “What we’re experiencing right now is a clear example of this.”
The clock is ticking
The European Commission’s hesitation to ratify the Mercosur agreement is becoming harder to defend, especially in light of industry consensus and the absence of any real downside for EU producers. Concerns that South American wine will “flood” the European market remain speculative at best and unsupported by current data or trade flows.
Instead, the greater risk lies in continued stagnation. As consumption falls in traditional strongholds and the US market wobbles on the edge of a tariff cliff, the Mercosur agreement may be one of the few remaining levers the EU wine sector can pull.
In vino veritas — and in this case, in trade agreements, perhaps survival.
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